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20 Cards in this Set
- Front
- Back
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Market
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a group of buyers and sellers of a particular good or service
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Competitive Market
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a market in which there are many buyers and many sellers so that each has a negligible impact on the market price
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Quantity Demanded
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the amount of a good that buyers are willing and able to purchase
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Law of Demand
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the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises
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Demand Schedule
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a table that shows the relationship between the price of a good and the quantity demanded
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Demand Curve
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graph of the relationship between the price of a good and the quantity demanded
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Normal Good
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a good for which, other things equal, and increase in income leads to an increase in demand
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Inferior Good
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a food for which, other things equal, an increase in income leads to a decrease in demand
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Substitutes
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two goods for which an increase in the price of one leads to and increase in demand for the other
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Complements
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two goods for which an increase in the price of one leads to a decrease in the demand for the other
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Quantity Supplied
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the amount of a good that sellers are willing and able to sell
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Law of Supply
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the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises
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Supply Schedule
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a table that shows the relationship between the price of a good and the quantity supplied
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Supply Curve
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a graph of the relationship between the price of a good and the quantity supplied
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Equilibrium
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a situation in which the price has reached the level where quantity supplied equals quantity demanded
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Equilibrium Price
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the price that balances quantity supplied and quantity demanded
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Equilibrium Quantity
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the quantity supplied and the quantity demanded at the equilibrium price
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Surplus
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a situation in which the quantity supplied is greater than the quantity demanded
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Shortage
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a situation in which the quantity supplied is less than the quantity demanded
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Law of Supply and Demand
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the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance
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